Crude Palm Oil Price Predicted To Stay High in 2022

JAKARTA –  The Indonesian Palm Oil Association (GAPKI) Deputy Chairman Togar Sitanggang said that the price of crude palm oil (CPO) is predicted to stay high during the year of 2022.

According to him, the CPO price is potential to stay around US$ 1,000 per ton, although there is also a possibility to decrease if compared to that of 2021.

“We predict the CPO price will stay high. But there is also potential impact to the economy that should be anticipated. For example, if the CPO price increases then its derivative prices will also increase. Moms should anticipate the potential increase of cooking oil price,” Togar said during a public discussion in Jakarta on Thursday, 23 December 2021.

At the same occasion, the Association of Indonesian Agricultural Economy (Perhepi) Chairman Bustanul Arifin said that during the last year the CPO price was not stable.

The CPO price spike up to US$ 1,300 per ton was driven by seasonal factors. “The price in 2022 will stay over US$ 1,000 per ton. “Maybe Indonesia has become the truly market market leader, no longer Rotterdam, despite the fact that it was driven by biofuel production. The CPO price has been also driven by the government policy on biofuel,” said Bustanul.

Bustanul said that in 2022 palm oil prospects remain bright and CPO production will increase along with the increase of its consumption for foods, industries and biofuel.

“In 2022, CPO producers will be facing a new challenge, which is inflation. But overall, the outlook for palm oil industry remains bright in 2022,” he said.

PT Nusantara Sawit Sejahtera’s Commissioner Robiyanto, who also addressed the public discussion, said that the palm oil prospects have indicated that there is still an opportunity to increase the local consumption of palm oil. “It is particularly possible for the downstream industry players who have a big potential to grow further,” he said.

He said that producers have taken the opportunity of price increase since early this year and it is projected to continue during 2022 to support their business expansion through the initial public offering (IPO) at the capital market.

“IPO target was set at Rp 2 trillion, which will be used to expand palm oil businesses, such as development of mills, intensification and replanting programs,” said Robiyanto. (*)

Source: tribunnews.com | Featured image via ensia.com

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